Test Master Look - ECCHO

Test Master Look - ECCHO

NCP 2014 Exam ECCHO Training Series Session 4 March 6, 2014 2:00 pm ET (1:00 pm CT; 11:00 am PT) All sessions 90-min. National Check Payments Certification Image Exchange: Rules and Agreements Copyright 2013 by the Electronic Check Clearing House Organization NOTICES This training course may provide an introduction to or summary of various aspects of check payments and the legal and rules framework for check image exchange. Responsibility for compliance with image exchange rules, and/or the legal, operational and regulatory requirements applicable to check image exchange, remains at all times with the financial institution participating in check image exchange and/or the individual or company using a check image exchange service. This presentation and the information contained herein is not intended as legal or compliance advice or recommendation to any person or company. This document could include technical inaccuracies or typographical errors and individual users are responsible for verifying any information found in this presentation and related live webinar or webinar playback. Financial institutions should consult with their legal counsel regarding legal and operational

requirements applicable to any check image exchange program they may offer or in which they participate. These program training materials may not be reproduced or published, in whole or in part, without the express permission of ECCHO. Copyright 2013 by the Electronic Check Clearing House Organization (Certain contributed content subject to third party copyrights) National Check Payments Certification 2 Session Overview Rules and Agreements Private Sector ECCHO Rules Key provisions Federal Reserve Rules Operating Circular 3 (OC3) and Reg J ECCHO/Fed Rules Comparison Warranties and Indemnification Summary Forward and Return National Check Payments Certification 3

Rules and Agreements Industry Rule Sets Exchanging Check Images with Federal Reserve Need agreement with the Federal Reserve Image exchanges between DFIs and FRBs Federal Reserve Image Exchange Rules - Operating Circular 3 (OC3) Covers exchange of check images through Federal Reserve Banks Incorporates Reg J Federal Reserve Board regulation regarding check processing Does not cover non-Fed image exchanges National Check Payments Certification 5 Industry Rule Sets Exchanging Check Images in Private Sector Channels Need private sector rules and agreements

Private Sector Image Exchange Rules ECCHO Rules (Electronic Check Clearing House Org) Clearing house rules under UCC Apply to members that agree to exchange images under rules CHECCS Rules (Clearing House Electronic Check Clearing System) Licensed copy of ECCHO Rules incorporated into TCH rules Include additional TCH-related provisions such as settlement and liabilities of the clearing house Apply to participants exchanging through SVPCO / The Clearing House (TCH) Bi-lateral or Multi-lateral Agreements One-off agreements unique to each group of exchange partners National Check Payments Certification 6 Common Set of Rules All Banks are Members of Same Clearing House and Using Common Rules Common Warranties

Bank A BOFD (Member) National Check Payments Certification Common Warranties IMAGE & IMAGE & MICR Data MICR Data Bank B Correspondent (Member)

Bank C Paying Bank (Member) 7 Potential Rules Mismatch Possible Mismatch of Agreement(s) and Common Rules Correspondent Agreement Common Exchange Under Clearinghouse Rules Correspondent Agreement may not fully address all legal issues for the collection/ presentment of check images with nonmember

Common Warranties IMAGE & IMAGE & MICR Data MICR Data Bank A BOFD (Non-Member) Bank B Correspondent (Member) Bank C Paying Bank (Member)

Exchange Not Covered By Common Clearing House Rules National Check Payments Certification 8 Rules and Agreements Banking Practices Agreement (BPA) Specifically state agreement to exchange under the rules BPA also includes: Operational logistics Details of rules provisions that may be varied by agreement BPA may be incorporated with other network or clearing house rules National Check Payments Certification 9 Banking Practice Agreements

General Considerations Agreement to use ECCHO Rules for Image Exchange and Electronic/Image Return Processing Start dates for both Forward and Return exchanges Image file formats and related companion document Routing number identification (for File Header Records) Eligible R/Ts Location for delivery of presentment notices and images Presentment Notice Timing With image or before/after image Image Ledger Cut-off Time Deadlines Receipt Deadlines for Presentment Notice and Image Acknowledgement deadlines Exchange Network Settlement Process Communication facility Settlement Process or Organization Adjustments Process or Organization Provisions that can be varied by ECCHO rules May Include Other provisions Not Listed National Check Payments Certification 10

Other Agreements Common Rules Generally Cover Bank-toBank Exchanges ECCHO Rules are for member exchanges Members must be financial institutions Agreements Needed to Cover Customer-toBank Exchanges Examples: Deposit account agreements Image-enabled services agreement o Such as Remote Deposit Capture (RDC) agreements National Check Payments Certification 11 Other Agreements Agreement with Remote Deposit Capture customer Address liabilities and responsibilities Review key points in FFIEC Guidance Agreement with Third Party Provider Address liabilities and responsibilities for

creating and/or sending check images and substitute checks National Check Payments Certification 12 Private Sector ECCHO Rules Process Overview Agreements Image Cash Letter Image Cash Letter ICL ICL Switch Archive

Deposit Check DEPOSITING CUSTOMER Sub Check Sending Bank/ BOFD Returnee Member Receiving Bank/Sending Bank / Presenting Bank Receiving Bank / Paying Bank Returnee Member / Returning Member Returning Member

DRAWEE CUSTOMER TRUNCATES / STORES CHECKS National Check Payments Certification 14 ECCHO Rules General Provisions Clearinghouse rules under UCC and Reg CC Rules are an agreement under UCC and Reg CC Members follow applicable industry standards Status of electronic image is Check under Reg CC and item under UCC Similar to language in Reg J; referenced in OC3 Eligible Items Check as defined under Reg CC Full MICR line

Partial MICR permitted by agreement o As-read MICR o RTA (Routing Transit and Amount) Agreement for exchange [Banking Practices Agreement (BPA)] Electronic Image/Return Originally Received Item is check as defined under Reg CC US Savings Bonds may be transmitted via image For redemption by US Treasury Department May be commingled with other images in same file National Check Payments Certification 15 ECCHO Rules Repair R/T and amount Sending Bank warrants repair Full field repair permitted Sending Bank responsible for amount of item and expenses if they exercise ordinary care Other repair based on law and agreement Data Security

Warrants appropriate safeguards are established to protect data (administrative/technical/physical) Notification and liability for cost of customer notification if security breach Third Party Agent May use Third Party Bank remains responsible National Check Payments Certification 16 ECCHO Rules Indorsement Must indorse check or image Require at least one electronic indorsement Sending Bank that is also BOFD must include indorsement Retention of Original Item Sending Bank determines Retention Paying Bank Maintain copy for 7 years (or applicable law) Presentment

Image Ledger Cutoff time Occurs when presentment notice and image are received or made available Managing Electronic Connection Sending Bank responsible for transmission Receiving Bank responsible to manage its connection National Check Payments Certification 17 ECCHO Rules Receipt File not received if bank cannot process Must notify sender if unprocessable May not reject entire file due to number of bad items Acknowledgements Receiving Bank required to provide Sending Bank required to provide for images made

available Counterfeit vs. Altered Presumption of alteration for disputed check image Unless Member can prove by preponderance of evidence that the item was not altered, evidence of counterfeit or check as issued National Check Payments Certification 18 ECCHO Rules Warranties / Forward Complies with all requirements of rules Image is acceptable copy Image contains all information required by standards No duplicate presentment Sending Bank (that is Depositary Bank) warrants item not forged, unauthorized or counterfeit (Rule 9) Image accurately reflects check Presentment Notice (MICR data record) accurately describes check

Image corresponds to item described in Presentment Notice See Chain of Warranties National Check Payments Certification 19 ECCHO Rules Chain of Warranties Electronic Image 0145 = National Check Payments Certification 0145 io n XI

X (L )(5 ) Warranty Section XIX (L)(2) B0000029545B Se ct Se cti on XI X = (L )(3

) W ar ra nt y W ar ran ty B0000029545B = Related Physical Check Presentment Notice 20 ECCHO Rules

Check 21 Provisions Recourse to a prior bank for Check 21 liability Regardless type of claim Not tied to expedited recredit Expedited Recredit Claim for banks mirrors Check 21 provisions Under Check 21, Expedited Recredit only applies to consumers National Check Payments Certification 21 Process Overview Agreements Image Cash Letter Image Cash Letter ICL

ICL Switch Archive Deposit Check DEPOSITING CUSTOMER Sub Check Sending Bank/ BOFD Returnee Member Receiving Bank/Sending Bank / Presenting Bank Receiving Bank / Paying Bank

Returnee Member / Returning Member Returning Member DRAWEE CUSTOMER TRUNCATES / STORES CHECKS National Check Payments Certification 22 ECCHO Rules Electronic Image Return Agreement for return Indication on Return That item is a return Reason for return Multiple Reasons Not required to indicate all reasons

Indorsements Must include Paying Bank indorsement Electronic Message returns data requirements No image; some data required by Reg CC Return Routing Must follow Return Routing Hierarchy (see next slide) NOI Return to BOFD Allowance for two representments National Check Payments Certification 23 ECCHO Rules Return Routing Hierarchy National Check Payments Certification 24 ECCHO Rules Warranties / Return

Returning Member warrants: Electronic/image return accurately corresponds to originally received item o What was received on forward exchange Image return is acceptable copy No duplicate presentment Returnee Member warrants: If not BOFD, will transmit or provide Electronic/Image Return to BOFD or other Member within applicable deadlines Full indemnification for forward and return Comparative negligence defense allowed National Check Payments Certification 25 ECCHO Rules Remotely Created Check Warranty Claim Process Generally referred to as Rule 8 Definition of RCC and warranty provided under

Reg CC (July 2006 amendment) ECCHO Rules set forth process for Paying Bank to make an Unauthorized RCC warranty claim Section XIX(N): Claim must be via return process Detailed process and related timing outlined in Rules for handling/responding to breach of warranty claim National Check Payments Certification 26 ECCHO Rules Unauthorized RCC Warranty claim in Adjustment Matrix Allow Rule 8 claim through adjustments Mirror Fed process and timing BOFD can not disclaim RCC adjustment claim by stating Paying Banks customer authorized RCC If Paying Bank determines it has claim under Reg CC warranty: Paying Bank can make claim to BOFD via return channel Section XIX(N) Paying Bank may use adjustment process for RCC warranty

claim Section XII Paying Bank may make claim outside ECCHO rules process National Check Payments Certification 27 ECCHO Rules Forged and Counterfeit Check Warranties Generally referred to as Rule 9 Sending Bank (that is Depositary Bank) warrants: Signature of purported drawer is not forged or otherwise unauthorized, and/or Related Physical Check is not counterfeit Participation is default in Rules Opt-out permitted unless clearing arrangement does not allow If opt-out is cancelled (default back to participation under the rules), cannot elect to opt-out again for 6 months Similar process as RCC warranty claim Claim made through return process but is not a return

No adjustment facility in rules Cannot send through the Fed National Check Payments Certification 28 ECCHO Rules Rule 9 Claim Section XIX (O) Available $ to Cover Warranty Claim? -orDisclaim Back to Paying Bank Charge Customer Statement IMAGE Deposited Check IMAGE

Bank X BOFD Depositing Customer BOFD Requests Copy of WSUPP Within 15 Business Days of receipt of claim Sub or Check Paying Bank IMAGE Paper Copy or Banks are all ECCHO Members Warranty Claim made directly to Depositary Bank

Within 15 Business Days of receipt of WSUPP - Image, Paper Copy (front/back) or Sub Check 29 ECCHO Rules 60* 90 105 110 Deadline to provide copy 15 Business Days Deadline for receipt of BOFD disclaimer or request for copy 15 Business Days Or

Deadline to file disclaimer or request for copy of customer statement 15 Business Days after receipt of claim Request Copy Deadline for breach of warranty claim 15 Business Days after receipt of customer statement. Settlement within 2 Business Days of claim Send Copy Customer files Claim statement within 60 calendar days Claim BOFD 75

Disclaimer Paying Bank Drawing Customer 1 Deadline to file disclaimer may be extended 5 Business Days. Depositing Customer If not received 1 Dr customers account Rule 8 Dr customers account if account balance

equals or exceeds amount of check Rule 9 60* 75 *60 days from availability of customers statement Dr customers account (Rule 8) if balance sufficient (Rule 9) 90 Time in Days 105 110 30 ECCHO Rules Imperfect Image Permits member to send Imperfect Image for forward exchange

or return Imperfect Images are Exceptions Electronic image/image return containing image that: Does not conform to industry standards Does not pass quality edits for exchange Must be identified / flagged Some rules apply while others will not Can be returned or adjusted Can create a substitute check Creating bank fully responsible Warrant receiving member and their customer will not incur loss as a result of receipt National Check Payments Certification 31 ECCHO Rules Image Perfect Images Examples Image of Item in Carrier May qualify as Imperfect Image Item If image of the carrier containing the item is

unreadable or otherwise does not meet applicable industry standards Photo-in-Lieu (PILs) PILs not required to have electronic flag o Printed legend on the photocopy meets this requirement National Check Payments Certification 32 ECCHO Rules Adjustment Rules For adjustment claim to be made for an item exchanged between ECCHO members, the type of adjustment must be: Listed on the adjustment matrix, and Item must be an image Ongoing changes to Rules and Matrix Based on new information and to better align to industry

practices and providers For more information: Fed and ECCHO adjustments rules and adjustment types will be discussed more fully in the upcoming Exceptions Returns and Adjustments session National Check Payments Certification 33 Federal Reserve OC 3 and Reg J General Provisions Monitoring Account Forward and Return Depositary, Collecting or Paying Bank responsible to monitor Fed account to ensure receipt of forward presentment items and returns Cutoff Hour Return Deadline

For purposes of return forward items received after 2:00 p.m. local time considered received next banking day National Check Payments Certification 35 Definitions Cash item Check other than one classified as a noncash item Any other item payable on demand and collectible at Reserve Bank that receives the item and is willing to accept as a cash item Check Draft, as defined in the Uniform Commercial Code, that is drawn on a bank and payable on demand Item An instrument or a promise or order to pay money, whether

negotiable or not, that is payable in a Federal Reserve District and collectible in funds acceptable to the Fed National Check Payments Certification 36 Definitions Electronic item Must include an electronic image of check and information describing that check Must conform to Federal Reserve technical requirements for processing electronic items Must be captured from a check May choose not to handle item if: Judges it should not be handled as cash item National Check Payments Certification 37 Warranties and Indemnity

Sender warrants and indemnifies Reserve Bank Against loss, claim, or damage that results in the handling of these items FRBs are liable for own negligence and actions that are not in good faith See Warranties and Indemnification Summary of this presentation for examples National Check Payments Certification 38 Electronic Access Use of electronic connection Bank agrees to terms established in OC5 Not every electronic access supports every feature May need more than one electronic access Bank is a Participating Bank Participating Bank must:

Establish bank's systems functionally compatible with Reserve Bank Capable to process volumes Meeting conditions require Identify Reserve Bank office where items will be sent Specify maximum volume Bank must execute agreement with Fed and meet conditions of Fed Bank has continuing obligation that systems are compatible Need prior consent to exceed daily maximum National Check Payments Certification 39 Electronic Services Disruptions in Electronic Services Problems may disrupt electronic access to services If unable to provide service Fed/Bank to notify Bank/Fed May elect to use physical form Bank must be prepared to meet its legal obligations when electronic access not available Information is deemed to be sent/received at physical location identified by the RT Time is deemed local time of location

Fed and Bank may exchange items in paper form May select agent to act on their behalf to: Access Fed system to process checks, send/receive cash letters and return cash letters Bank warrants that information is substantially accurate Bank is responsible for security and controls Settle based on exchanges of agent National Check Payments Certification 40 Transmission Delivery and Receipt for All Forward/Return Delivered by Fed/Bank and received by Bank/Fed when placed on Fed storage device that makes file available to retrieve or review Fed may also transmit to Bank Bank must manage its electronic connection If fails to manage, Fed may limit attempts to send

In such a case, Fed is deemed to have sent information when it attempts to transmit the information For purposes of knowing when an item, notice, message, acknowledgement, or information file delivered / received, Fed records are determinative By use of electronic connection Bank agrees that connection is reasonable means of communication National Check Payments Certification 41 Retention FRB retains cash letter no longer than two days Bank bears responsibility to retrieve its files in timely manner Fed not obligated to retain or make copies of electronic items National Check Payments Certification 42

Cash Letter Processes Cash Letter Prep Items may be listed by amount without further description Cash letters dated and identified by senders name /routing number Accept following items forward/return only in special cash letters Noncash items Carrier documents Food coupons Foreign items Photo-in-Lieu (PIL) May require forward/return cash letter be segregated National Check Payments Certification 43 Cash Letter Processes Image and Return Cash Letters Sender provides file conforming to standards

Conform to DSTU X9.37 and FRB user document Files must be transmitted by means of electronic connection Entire file must be received prior to processing deadline Must successfully pass Reserve Bank edits Not responsible for delays in handling or lost files Liable for loss within own shop that causes delay Liable for delays created by own negligence Reserve Bank will send acknowledgment to sender Receipt acknowledgement (positive) or Non-receipt(negative) National Check Payments Certification 44 Indorsements All cash items and return checks sent must be indorsed according to Reg CC Items received without senders indorsement, FRB may choose to: Present the item as if it was indorsed Add the indorsement Return item

National Check Payments Certification 45 Availability of Credit Federal Reserve accepts items, forward and return, in accordance with published schedules and procedures Provides credit in accordance with published circulars Items defined and handled as Cash Items (Check, substitute check, electronic items as defined in circular, government check, postal money orders, savings bonds, foreign items) Appendix A: Government Checks Appendix B: Postal Money Orders Appendix C: Redeemed Savings Bonds / Savings Notes Appendix D: Foreign Cash Items National Check Payments Certification 46 Presentment Federal Reserve Bank may physically present items at any location as defined in Reg CC Paying bank is considered to receive a cash item when

delivered as requested or when made available for pickup as arranged Reserve Bank may present an electronic item to Paying bank by transmitting or delivering an image cash letter containing the electronic item Presentment occurs when the image cash letter is: Transmitted to the paying bank, or Written on the Reserve Banks data storage device Must be in a form that is available for retrieval by the paying bank National Check Payments Certification 47 Notification For Forward Presentment and Return: Federal Reserve Bank has no responsibility for giving notice to a sender of anticipated delays in presentment or return of cash items unless: Delay is expected to involve at least ten paying banks and Lasts at least three business days

National Check Payments Certification 48 Returned Checks Paying bank may return through Fed if it meets deadlines May send to Fed items not handled in forward No commingling with forward cash letters Bank sending returned check warrants return is within legal timeframes and indemnifies Fed from any loss Fed does not agree to handle item more expeditiously than required by Reg CC National Check Payments Certification 49 Returned Checks If Bank unable to identify depositary bank on check received from Fed Bank may send back to Fed

Fed may rely on amount and depositary bank in appropriate field May return item to depositary bank or prior collecting bank by returning electronic image and data Return occurs when image return is written on data storage device National Check Payments Certification 50 Returned Checks Fed may resend file two days after original file sent Based upon request Bank indemnifies Fed for any loss Return conforms to Feds technical or operational requirements Bank must settle for returns as it does cash items If return misrouted, encouraged to send promptly to identified depositary bank

If unidentified, bank sends NOI (Not Our Item) to Fed Fed does not handle as a cash item an item that has been declined for payment two or more times Only allows two total presentments One re-presentment only National Check Payments Certification 51 Other Provisions Notice of Non-Payment Service Paying Bank may request this service Fedline for the Web Fedline Advantage Competing service to EARNS notification system OC3 also includes: Adjustments Appendices for specialized products and services offered by Federal Reserve Banks

National Check Payments Certification 52 ECCHO / FED Rules Comparison ECCHO and Fed Rules Federal Reserve Creates its own image exchange rules (OC3) Fed does not incorporate the ECCHO rules into its Operating Circulars Reserve Bank is itself a party to exchange of check images ECCHO Creates and maintains rules for private sector image exchange Rules apply only to exchanges among its members or licensing organization Members (not ECCHO), are

parties to the check image exchanges 54 National Check Payments Certification ECCHO and Fed Rules Federal Reserve ECCHO FRBs support specific set of check image exchange products ECCHO rules are neutral on vendors and products Check 21 products for both receive and send processing FedForward FedReceipt FedReturn Other Image Services

National rules set accommodates all types of check image exchange models such as direct exchanges, Image Archive, etc. National Check Payments Certification 55 ECCHO and Fed Rules Federal Reserve Presentment is based on what is sent Presentment occurs when the electronic data is sent or made available to the Paying Bank Items considered presented when placed on FRB storage device for Paying Bank to pick

up or when transmitted to the Paying Bank National Check Payments Certification ECCHO Presentment is based on what is received Presentment occurs when the electronic data and the image are received or made available to the Paying Bank Presentment under ECCHO rules occurs when the file is received or made available 56 ECCHO and Fed Rules Federal Reserve Indemnities from Sending Bank When FRB sends items to

Paying Bank, no indemnity is provided other than Check 21related indemnity Remotely Created Checks (RCC) Claims Handled only through adjustment process Only for items sent forward through the Fed National Check Payments Certification ECCHO Indemnities from Sending Bank ECCHO rules provide full indemnity for breach of image rules warranties Remotely Created Checks (RCC) Claims Handled as either return or through adjustment process Can be item sent through Fed or ECCHO forward exchange

57 ECCHO and Fed Rules Federal Reserve Fed requires Full MICR line for item to be eligible to exchange Required to create substitute check Adjustments Item to be adjusted must have been exchanged through FRB National Check Payments Certification ECCHO Default is FULL MICR Allow Partial MICR by agreement Rules further define As-Read MICR or RTA Adjustments

Rules allow items to be adjusted between members that may/may not have been exchanged under ECCHO rules 58 Warranties/Indemnification Summary Warranty & Indemnification Warranties/Indemnification Review Understanding and comparing the warranties and related indemnification regarding certain exchanged items ECCHO Rules / UCC / Reg CC / OC3 / Reg J ECCHO incorporates by reference provisions of UCC and Reg CC Section XIX (F) Forward exchange Section XX (E) Return National Check Payments Certification

60 NCPC PREP Guide Payments Resource and Exam Preparation Guide Warranties / Related indemnification tables in training guide Exhibits 5 and 6: Forward Exchange Warranties & Indemnification Exhibits 7 and 8: Return Warranties & Indemnification Tables list Warranty Source Uniform Commercial Code Regulation CC Regulation J ECCHO Operating Rules Tables list Warranty Description and how it applies: Interbank only Bank(s) and customer Clearinghouse members Exchanges through the Fed or under ECCHO Rules National Check Payments Certification 61

Warranty & Indemnification Forward Exchange Warranties Examples of P.R.E.P. Guide Tables EXHIBIT 5: FORWARD EXCHANGE W ARRANTIES Source /Type UCC Presentment Warranties UCC 4-208(a) Warranty or Other Responsibility Person presenting item warrants: (1) Entitled to enforce draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft; (2) Item has not been altered; and Application to Banks and/or Customers Made expressly applicable to image exchange via ECCHO Rules provision Applies interbank only (3) Warrantor has no knowledge that the signature of the purported drawer of the draft

is unauthorized; and (4) For RCC, person on whose account the item is drawn authorized item and amount for which it is drawn ECCHO Sending Bank warrants correct repair of RT and amount fields Operating Rules Damages for breach of this warranty shall not exceed amount of item plus interest - Repair of Item compensation and expenses, if any. III(C)(1) and III(C)(2)(a) Applies to repair of any item Federal Reserve Sender Warrants to each Reserve Bank handling the item that: Regulation J (i) The sender is a person entitled to enforce the item or authorized payment of the 210.5(a)(2) item on behalf of a person entitled to enforce the item; Applies interbank only

(ii) The item has not been altered; and Applies interbank only Applies to ECCHO members only Applies to Items Exchanged through Federal Reserve (iii) The item bears all indorsements applied by parties that previously handled the item, in paper or electronic form, for forward collection or return National Check Payments Certification 62 Warranty & Indemnification Forward Exchange Indemnification Examples of P.R.E.P. Guide Tables EXHIBIT 6: FORW ARD EXCHANGE INDEMNIFICATION OR OTHER LIABILITY Source /Type Indemnity or Other Liability or Responsibility

Application to Banks and/or Customers Reg CC - Check 21 Substitute Check indemnity Bank that transfers, presents, or returns a substitute check or other representation of substitute check for which it receives consideration indemnifies the recipient and any subsequent recipient for any loss incurred from receipt of substitute check if the loss occurred due to receipt of substitute check instead of original item Indemnity could arise for interbank exchange and between paying bank and its customer Reg CC 229.53 Can be reduced by comparative negligence

Indemnity could arise from exchange of image of substitute check under ECCHO Rules ECCHO Operating Rules - Indemnity for Breach of Standard Image Exchange Warranties If Sending Bank breaches any of its warranties set forth in Section XIX(L), it indemnifies Receiving Bank and holds it harmless from and against any damage, expense or loss, including attorneys fees, suffered as a result of the breach Applies interbank only (Full indemnification) Subject to reduction for comparative negligence by Receiving Bank. Limited application to Imperfect Images.

Applies to ECCHO members only XIX(L) Federal Reserve Sender indemnifies each Reserve Bank for any loss or expense sustained (including attorney fees and expenses of litigation) from: Regulation J 210.5(a)(5)(i) Applies interbank only (A) The senders lack of authority to make the warranties; (B) Any action taken by the Reserve Bank within the scope of its authority in Applies to Items Exchanged handling the item; (C) Any warranty or indemnity made by the Reserve Bank under Section 210.6(b) through Federal Reserve of Regulation J National Check Payments Certification 63 Questions

? ?? ?? ? National Check Payments Certification 64 Quiz Questions Available online with session handouts Review each question carefully Answer based on whats been presented Use additional recommended resources as needed P.R.E.P. Guide Question of the Day Other online exam resources Answer Key included Will review at start of next session Save weekly Quiz Handouts Review Questions and answers Will reference in Series Review sessions

National Check Payments Certification 65 Recommended Resources Regulation CC (12 CFR Part 229): http:// www.ecfr.gov/cgi-bin/text-idx?SID=0ed75d38896a339d9b5189ceb4ebe8b9&node=12:3.0.1.1.10&rgn= div5 Regulation J Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire (12 CFR Part 210): http://www.ecfr.gov/cgi-bin/text-idx?SID=0ed75d38896a339d9b5189ceb4ebe8b9&node=1 2:2.0.1.1.11&rgn=div5 Federal Reserve website: http:// www.frbservices.org/regulations/operating_circulars.html

ECCHO website: National Check Payments Certification www.eccho.org/rules 66 Next Session Session #5: March 13 2:00 pm ET (1:00 pm CT / 11:00 am PT) All sessions 90-minutes Topic: Image Exchange: Processes Will discuss: Check Processing Overview Types of Image Exchange Typical Day 1 and Day 2 Processes National Check Payments Certification 67

Ellen Heffner, NCP Director and Education Manager [email protected] 214-273-3211 Phyllis Meyerson, AAP, CCM Executive Vice President [email protected] eccho.org 214-273-3202 Image Exchange: Rules and Agreements Thank You! Electronic Check Clearing House Organization 3710 Rawlins Street; Suite 1075 Dallas, Texas 75219 NOTICE This NCPC Program document contains copyrighted materials of its publisher. These program training materials may not be reproduced or published, in whole or in part, without the express permission of ECCHO.

Recently Viewed Presentations

  • Chapter 5 - Total Quality Management Operations Management

    Chapter 5 - Total Quality Management Operations Management

    (continued) Understanding Quality Tools Ongoing training on analysis, assessment, and correction, & implementation tools Team Approach Teams formed around processes - 8 to 10 people Meet weekly to analyze and solve problems Benchmarking Studying practices at "best in class" companies...
  • Business Systems - Las Positas College

    Business Systems - Las Positas College

    In this section: Knowledge Management, Customer Relationship Management, Enterprise Resource Planning and Systems Development. Knowledge Management Assists an organization in capturing, storing, and distributing knowledge for use and reuse by the organization and, sometimes, its partners and customers.
  • Geography Conference, Canberra 20th July 2006 Methods for

    Geography Conference, Canberra 20th July 2006 Methods for

    Literacy Earthquakes Group work Introduction - Movie maker ICT task: Movie maker Cyclones Individual Introduction - Moviemaker Case Study - Cyclone Larry Powerpoint Media File online research On the ground roving reporter.
  • The Big Four  British = David Lloyd George

    The Big Four British = David Lloyd George

    The big four meet at the Paris Peace Conference following WWI. Also known as the Council of Four. Met at Versailles. Treaty of Versailles. Signed on June 28, 1919. Exactly 5 years after the assassination of Archduke Franz Ferdinand. ......
  • Applying Reliability Physics Analysis to ISO-26262 Functional Safety

    Applying Reliability Physics Analysis to ISO-26262 Functional Safety

    MIL HDBK 217F-2, & RIAC: 217 Plus, NPRD 95 - Nonelect. Parts Reliability Data, MIL HDBK 338 (EE Reliability Design HDBK). RIAC-FMD (Failure Mode Distributions), UTE C80-811 (Fides -French MIL), SN 29500 (Siemen German Industrial) NOTE 1 The failure rate...
  • Gifting Using Gifting to discover the power of

    Gifting Using Gifting to discover the power of

    Title: No Slide Title Author: Manulife Emplyee Last modified by: Polla Bilodeau Created Date: 7/22/1999 3:30:36 PM Document presentation format: On-screen Show
  • New World Order - MIT

    New World Order - MIT

    New World Order 21H.102 December 5, 2005 New World Order 21H.102 December 5, 2005 When the Professional Air Traffic Controllers Organization (PATCO) went on strike against the Federal Aviation Administration in 1981, President Ronald Reagan waited just three days to...
  • Section 4.2

    Section 4.2

    The Unit Circle; Trigonometric Functions of an Angle. Define the trigonometric functions using the unit circle. Find exact trigonometric function values using a point on the unit circle. Find trigonometric function values of quadrantal angles. Find trigonometric function values of...